India’s GDP to grow at 6.9 per cent in 2011-12
07 Feb 2012
India's gross domestic product (GDP) is estimated to grow at 6.9 per cent in the current financial year (2011-12), lower than the earlier estimate of above 7.0 per cent and the 8.4 per cent growth rate achieved during the previous fiscal.
Quick estimates released by the Central Statistical Office (CSO) have projected GDP at factor cost at constant (2004-05) prices to reach Rs52,22,027 crore in 2011-12 against Rs48,85,954 crore in 2010-11 - a growth rate of 6.9 per cent.
Finance minister Pranab Mukherjee, however, hopes there would be an upward revision of growth estimates when full data for the year 2011-12 become available.
CSO attributes the slowing of GDP growth to a slackening of growth in sectors like agriculture, manufacturing, construction and mining.
The 'agriculture, forestry and fishing' sector is estimated to grow at 2.5 per cent, due mainly to a higher base, with the sector growing at nearly 7 per cent in the previous fiscal.
Foodgrain production is expected to grow 2.3 per cent in the current fiscal compared to the record 12.2 per cent growth in the previous agriculture year.
Production levels of cotton and sugarcane are also expected to rise by 3.3 per cent and 1.6 per cent, respectively, in 2011-12.
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